Crypto Asset Valuations: What SMSF Auditors and Accountants Need to Know in 2026

As cryptocurrency investments grow in popularity among SMSF trustees, so too does the focus on how these digital assets are reported and audited.

At Superannuation Audit Services, we see first-hand how rigorous valuation and documentation requirements for crypto can affect audit outcomes. Staying on top of these requirements helps ensure compliance and reduces the risk of qualifications or contraventions in audit reports.

Why Crypto Valuation Matters in an SMSF Audit

Cryptocurrency assets held within an SMSF must be reflected at accurate market value in the fund’s financial statements at the financial year-end. Simply presenting a holding statement or summary is not sufficient. The Australian Taxation Office (ATO) expects auditors to verify that market values are supported by independent evidence rather than taken at face value from a statement.

This means that accountants preparing SMSF financials and auditors reviewing them should be comfortable with how a valuation was compiled, including the valuation source and methodology. Reliable evidence might include published closing values from a reputable exchange as at 30 June or other verifiable pricing sources that support the audit file.

When cryptocurrencies are held through an exchange or custodian, the auditor must also obtain a Type 2 audit report, where available, and carry out substantive testing to validate the holdings. This ensures the reported asset values genuinely reflect the fund’s position at year-end.

Key Audit Requirements for Crypto in SMSFs

From an auditing viewpoint, there are several important checks and balances:

Ownership and control Cryptocurrency must be held in a digital wallet in the name of the SMSF and clearly separated from any personal holdings of trustees or members. This helps ensure the fund’s assets are genuinely part of the SMSF.

Trust deed and investment strategy compliance Before auditors can sign off on reporting, they must confirm that crypto investments are permitted under the fund’s trust deed and align with the investment strategy. It is also important that trustees have considered the risks associated with these volatile assets in the context of retirement goals.

Valuation evidence and documentation Whether the crypto is held directly or through a custodian, auditors must document the basis for the valuation used in the financial statements. Market value should be supported by objective sources and documented in the audit file.

If auditors cannot verify that a crypto holding belongs to the SMSF or is reported at market value, and the holding is material to the financial statements, auditors may have no option but to qualify both Part A and Part B of the audit report. In some cases, an Auditor Contravention Report (ACR) may also need to be lodged for a breach of Superannuation Industry (Supervision) Regulation 8.02B.

How This Impacts Your Practice

Accounting firms preparing SMSF annual financials should ensure clients with cryptocurrency holdings:

• Maintain detailed records of wallets, account ownership and transaction history

• Use reputable, objective sources for market valuation at 30 June

• Ensure investment strategies and trust deeds permit crypto holdings

• Keep clear documentation of valuation methods to support audit evidence

Understanding these requirements helps reduce the risk of auditors needing to qualify reports or lodge contraventions, which can trigger further regulatory scrutiny.

Superannuation Audit Services: Supporting Trusted Outcomes

At Superannuation Audit Services, we are committed to delivering thorough and compliant SMSF audits that consider the full regulatory landscape. Our audit teams are experienced with complex asset classes, including cryptocurrency, and we work closely with accountants to help navigate valuation requirements and documentation standards.

If your clients hold digital assets, preparing ahead with robust evidence and well-documented valuations will help streamline the audit process and support accurate reporting.

For more information on how we can support your SMSF audits in 2026, please contact our team.

Book a FREE consultation with our team of trusted SMSF auditors today.

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Disclaimer: This communication is for general informational purposes. For tailored advice specific to your firm’s circumstances, please contact us directly